Internal Rate Of Return - IRR
IRR represents the discount rate that makes the net present value of all cash flows in particular project equal to zero. IRR is used in capital budgeting as a measurement for comparing several investing projects. The project with highest internal rate of return will usually gain higher returns.
These internal rate of returns are just projections, but the higher IRR projects is excepted to provide much better financial results than the projects with lower IRRs.
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